GBP/USD maintains the strong tone following its bullish “outside day” for a break to a new cycle high. Economists at Credit Suisse look for a move to their first core upside target of 1.4302/77 – the 2018 highs and 50% retracement of the 2014/2020 bear trend.
Support at 1.4155 ideally now holds
“With a base in place from March/May as well as a long-term base already in place from late 2020 we maintain our core and long-held bullish outlook. We thus look for a clear break above the 1.4235/46 current highs for a move to our first core upside target of 1.4302/77 – the 2018 highs and 50% retracement of the 2014/2020 bear trend.”
“Whilst we would look for a fresh pause below 1.4377, big picture we look for this to be cleared in due course for an eventual move to 1.49/1.51.”
“Support moves to 1.4200 initially, then 1.4187, with the 13-day average and price support at 1.4167/55 now ideally holding to keep the immediate risk higher. A break can see a fall back to the “outside day” low at 1.4091.”